Retail investors show less conviction in buying US stock market dips

By Suzanne McGee

(Reuters) -Retail investors are showing signs of waning confidence in the U.S. stock market’s ability to rebound, with market data and analysts’ observations both indicating an ebb in their enthusiasm about buying dips.

Individual investors have been an important factor behind this year’s market rally, helping it to bounce back from selloffs and powering it to a string of record highs.

But as the market has lurched downwards since the start of this month and pulled back from its recent peaks, investors have shown less propensity to invest on down days, analysts said.

“Sure, the whole ‘buy the dip’ mantra still has a lot of support out there on social media channels, but investors are paying more attention to questions about valuations or whether we’re in an AI bubble,”